Private & Confidential Valuation and Concluding Remarks Timothy Ross Head of Investor Relations and Corporate Communications 83 Private & Confidential Timothy Ross Head of Investor Relations & Corporate Communications • More than 25 years of investment banking and aviation-related experience • In charge of Investor Relations and Corporate Communications • In depth knowledge of capital markets and industry investment community 84 Private & Confidential Valuation: Horses for courses • Valuation tools…which one is right? • Earnings-based multiples (P/E, EV/EBITDA) • Cashflow analysis (DCF, EVA) • Asset-based multiples (P/B, P/NAV) • What comprises equity value for an asset-owning company? • Hard asset values • Value of franchise or NPV of excess returns We believe that BOC Aviation remains undervalued 85 Private & Confidential Stable NPAT growth and ROE NPAT ROE (US$ Million) (%) Our stable earnings and returns track record should justify a higher valuation All data as at 31 December of relevant year 86 Private & Confidential 1) PB vs. ROE analysis Using a broader industry makes for more meaningful valuation comparisons Even in simplistic terms, BOC Aviation appears undervalued by 14% on long run average ROE Source: Bloomberg, as at 16th May 2018 87 Private & Confidential What Drives Industrial Corporate Valuations? • 2) Hard asset values, which represent: • Cost of production as a floor • NPV of the asset’s mid-cycle cashflows at average operator WACC • 3) Franchise value • Management contribution • NPV of excess returns vs. comparable market alternatives 88 Private & Confidential 2) Gains on Sale Confirm Book Value is Historically Understated vs. Market Value Pre-tax gain on sale of aircraft (US$ million) 91 77 78 70 67 36 35 30 23 22 24 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 US$553 million pre-tax gains on sale of 217 aircraft in last 11 years All data as at 31 December of relevant year 89 Private & Confidential 2) Aircraft NBV vs Average Current Market Value1 US$ billion 1 Based on the average of five independent appraisers All data as at 31 December of relevant year unless otherwise indicated 90 Private & Confidential 3) Franchise Value Toolbox Data Value 2018E Equity Value1 (US$ bn) 4.0 Average remaining lease term (years) 8.1 5-yr average ROE (%) 15% Global Asian Industrial 5-yr average ROE2 (%) 12.7% • What you still need to think of: • Book Value growth • Appropriate Cost of Equity 1 Bloomberg consensus 2 Source: Average of UBS, Goldman Sachs and Morgan Stanley investment 91 research estimates Private & Confidential Value Driven by Fleet and Committed Lease Revenues Net Book Value understates business value Committed future revenues of > US$15 billion US$ billion US$ billion + PV of excess returns on equity +US$1.7bn premium of current market value1 over aircraft NBV 15.3 Committed future lease revenues create additional value All data as at 31 December 2017 Note: 1. Based on an average of five independent appraisers’ aggregate value for our owned fleet at US$15.3 billion, on a full-life, current market value basis, which compared with a net book value of US$13.7 billion 92 Private & Confidential Growth in Cumulative Book Equity and Dividends US$ million +15% +44% +9% +10% +16% +15% +15% +39% +33% +16% 1 Shareholder wealth has grown at c.19% CAGR since acquisition by BOC All data as at 31 December 2017 Notes: 1. IPO on 1 June 2016 2. Book value defined as Shareholders’ Funds excluding new primary equity raised during the year, if any 93 Private & Confidential Total Shareholder Return Best in class returns YTD1 BOC Aviation 60.0% FLY Leasing 28.6% Aercap 15.8% China Aircraft Leasing Co. 10.5% Aircastle 7.9% Bohai Leasing 3.7% CDB Financial Leasing -12.4% Avation PLC -13.1% Air Lease Corp -18.5% Total shareholder return ~25% since IPO 1 Source: Bloomberg, Annualised YTD total shareholder return as at 16th May 2018 94 Private & Confidential Benchmarking and Differentiation Source: Respective company websites, FlightGlobal, BOC Aviation’s computations All data for the year ended 31 December 2017 or as at 31 December 2017 unless indicated otherwise Notes: 1. Including aircraft held for sale 2. As at 31 March 2018 3. Including finance leases 4. As at 30 September 2017 5. Weighted by NBV of owned fleet 6. As at 31 March 2018 for BOC Aviation, Aercap and Aircastle, 23 March 2018 for CALC, 31 December 2017 for CALC, ALC, SMBC, ACG 7. Annualised for the three months ended 31 March 2018 for Aercap and Aircastle 95 Private & Confidential Benchmarking and Differentiation Avg. cost of funds1 Credit Rating Lessor Fitch S&P 5.0% BOC Aviation A- A- 4.3% SMBC Aviation Capital A- BBB+ 4.1% 4.1% 4.0% 4.1% Aviation Capital Group BBB A- 3.2% Air Lease Corporation BBB BBB 2.8% Aercap BBB- BBB- Avolon BB BB+ Aircastle NR BB+ Dubai Aerospace NR BB 2 3 2 BOC ALC Aercap ACG SMBC CDB L CALC Aircastle Fly Leasing NR BB- Aviation Source: Respective company websites; Bloomberg, BOC Aviation’s computations All data for the year ended 31 December 2017 or as at 31 December 2017 unless indicated otherwise Notes: 1. Calculated as annualized interest expense for the year divided by average debt. 2. Annualised for the three months ended 31 March 2018 3. As at 31 March 2017 96 Private & Confidential Conclusion • Attractively valued on any metric • Leading player in a growth market and located at that market’s epicentre • Committed to increasing shareholder value • US$15.3 billion pipeline of future committed revenue • Best in class funding costs • Management team experience amongst the best in the world • Average 28 years of aviation, leasing and banking experience for senior management • Industry’s longest-serving CEO with any one company • Management now even more aligned with investors through share ownership • Established track record of operational and financial excellence as Asia’s only major specialized aircraft operating leasing company BOC Aviation - a Company worth investing in 97 Private & Confidential www.bocaviation.com BOC Aviation Limited 8 Shenton Way #18-01 Singapore 068811 Phone +65 6323 5559 Facsimile +65 6323 6962 Incorporated in the Republic of Singapore with limited liability Company Registration No. 199307789K 98.